BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

Solutions

Chapter
Section
BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
1 views

Which of the following is an investing activity?

  1. a. Issuance of a mortgage
  2. b. Increase in accounts receivable
  3. c. Purchase of land
  4. d. Increase in inventories
  5. e. All of these.

To determine

Identify the investing activity.

Explanation

Cash Flows from Investing Activities:

This category of a cash flow statement shows the investing activities which involves the purchase or sale of long-term assets. This includes acquiring new asset or acquiring stock in another company.

c.

The purchase of a long-term asset is an investing activity. Land is a long-term asset and the purchase of land is considered as an investment Therefore, c is the correct option.

a.

The issuance of mortgage is a financing activity. Any activity done to raise or provide capital to the owners or creditors is a financing activity...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Why must a signature card be filled out and signed to open a checking account?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Why would the inventory turnover ratio be more important for someone analyzing a grocery store chain than an in...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)